Register a Singapore Company from Iceland

Introduction

For Icelandic entrepreneurs and businesses looking to expand internationally, Singapore stands out as one of the best destinations in Asia to establish a company. Known for its transparent regulations, low taxes, and world-class infrastructure, Singapore has become a global hub for trade, innovation, and finance.

Whether you’re an Icelandic startup venturing into new markets, a shipping company expanding its logistics network, or a technology firm seeking Asian partnerships, registering a Singapore company from Iceland offers access to immense opportunities in the Asia-Pacific region. This article outlines why Singapore attracts Icelandic businesses, how to incorporate remotely, and the advantages of doing so.

Why Icelandic Entrepreneurs Choose Singapore

1. Strategic Gateway to Asia-PacificSingapore’s central location within Southeast Asia provides Icelandic businesses with direct access to major regional markets like Indonesia, Malaysia, Vietnam, and Thailand. For companies in trade, logistics, and technology, Singapore is the ideal hub to manage operations across Asia.

2. Ease of Doing BusinessSingapore consistently ranks among the top countries globally for ease of doing business. The incorporation process is straightforward, fast, and fully digital. Icelandic entrepreneurs can complete the entire process online through a corporate-services provider without visiting Singapore.

3. Favorable Tax EnvironmentWith a corporate tax rate of 17%, no capital gains tax, and no tax on dividends, Singapore offers one of the most competitive tax regimes in the world. This allows Icelandic companies to retain more profits and reinvest into expansion.

4. Stable Political and Legal FrameworkSingapore’s stable government and robust legal system make it one of the safest jurisdictions for foreign investment. Like Iceland, Singapore values integrity, efficiency, and long-term economic sustainability.

5. Reputation and Global TrustA Singapore-incorporated company is recognized globally for reliability and professionalism. Icelandic entrepreneurs gain a competitive edge when dealing with Asian partners, investors, or clients.
   

Advantages of Registering a Singapore Company from Iceland

1. 100% Foreign OwnershipIcelandic citizens and companies can own their Singapore business entirely without requiring a local shareholder.

2. Fast and Remote IncorporationThe registration process is digital and can be completed within one working day via a licensed corporate-service provider (CSP).

3. Double Taxation Agreement (DTA)While Iceland and Singapore do not currently have a direct DTA, Singapore’s wide network of over 90 DTAs with other countries still benefits Icelandic companies that operate regionally.

4. Free Repatriation of ProfitsProfits can be transferred back to Iceland without restrictions or additional withholding taxes.

5. Access to Global BankingSingapore’s banking system is one of the most advanced in the world, offering multi-currency accounts and digital banking services ideal for international trade.

6. Gateway to ASEAN and AsiaIcelandic exporters, marine-service firms, and tech companies can use Singapore as a base to access the 600-million-strong ASEAN market and the wider Asia-Pacific economy.
   

Common Business Structures for Icelandic Entrepreneurs

When setting up a company in Singapore, Icelandic business owners can choose from several structures based on their business model and goals:

1. Private Limited Company (Pte. Ltd.)

   • Separate legal identity from shareholders

   • Limited liability for owners

   • Eligible for tax exemptions and incentives

   • 100% foreign ownership allowed

2. Subsidiary Company

   • A Singapore-incorporated entity owned by an Icelandic parent company

   • Treated as a Singapore-resident entity for tax purposes

   • Ideal for established corporations entering Asia

3. Branch Office

   • An extension of the Icelandic parent company

   • Not a separate legal entity

   • Parent company remains liable for debts and obligations

4. Representative Office

   • Non-commercial entity for research, marketing, or liaison activities

   • Cannot generate revenue or enter into contracts

   • Suitable for market-testing before full incorporation

Most Icelandic entrepreneurs prefer the Private Limited Company (Pte. Ltd.) model due to its flexibility, limited liability, and credibility.

Requirements to Register a Singapore Company from Iceland

To incorporate a company in Singapore, Icelandic entrepreneurs must meet the following requirements:

1. At Least One Local DirectorEvery Singapore company must have at least one director who is a Singapore citizen, permanent resident, or Employment Pass holder. Icelandic investors can engage a nominee director through their CSP.

2. At Least One ShareholderA company can have 1–50 shareholders, and full foreign ownership is allowed.

3. Company SecretaryA qualified company secretary must be appointed within six months of incorporation.

4. Registered Office AddressA local Singapore address is required. Many foreign-owned companies use virtual-office services.

5. Paid-Up CapitalThe minimum paid-up capital is SGD 1, though a higher capital (e.g., SGD 1,000 or more) is often chosen to enhance credibility.

6. Approved Company NameThe company name must be unique and approved by the Accounting and Corporate Regulatory Authority (ACRA) before registration.
   

Step-by-Step Process: How to Register a Singapore Company from Iceland

Step 1: Engage a Corporate Services Provider (CSP)

Foreigners cannot self-register a company in Singapore. Icelandic entrepreneurs must appoint a licensed CSP to manage incorporation, nominee-director arrangements, and compliance.

Step 2: Choose and Reserve a Company Name

Submit 1–3 preferred names for ACRA approval. The process is typically completed within hours, provided the name is not restricted or conflicting.

Step 3: Prepare Incorporation Documents

Required documents include:

• Passport copies and proof of address for all directors and shareholders

• Company Constitution (available from ACRA)

• Shareholding structure and capital details

• Description of business activities

Step 4: File Incorporation with ACRA

Your CSP will file the necessary documents electronically. Most companies are approved within one working day.

Step 5: Open a Corporate Bank Account

After incorporation, open a corporate bank account with banks like DBS, OCBC, UOB, or international banks such as HSBC or Standard Chartered. Some banks allow remote account setup for Icelandic clients.

Step 6: Obtain Business Licenses (if required)

If your business operates in regulated industries (e.g., finance, import/export, or education), specific licenses may be required.

Step 7: Register for Taxes

If annual turnover exceeds SGD 1 million, your company must register for Goods and Services Tax (GST). Corporate-tax registration is automatically handled through IRAS (Inland Revenue Authority of Singapore).

Post-Incorporation Obligations

1. Annual FilingAll Singapore companies must file annual returns with ACRA and tax returns with IRAS.

2. Accounting and BookkeepingCompanies must maintain accurate accounting records. Smaller companies may qualify for audit exemption under the “small company” criteria.

3. Annual General Meeting (AGM)Must be held within 18 months of incorporation, and annually thereafter.

4. Employment ComplianceCompanies hiring staff must comply with Singapore’s Employment Act and CPF (Central Provident Fund) regulations.
   

Tax and Financial Benefits for Icelandic Businesses

1. No Capital Gains or Dividend TaxesSingapore does not tax capital gains or dividends, allowing Icelandic shareholders to maximize profit repatriation.

2. Startup Tax ExemptionNewly incorporated companies can enjoy up to 75% exemption on the first SGD 100,000 of income during the first three years.

3. Flat Corporate Tax RateAt 17%, Singapore’s corporate tax rate is globally competitive and much lower than in most European countries.

4. Tax Incentives and GrantsSingapore provides numerous grants for innovation, sustainability, and R&D — particularly beneficial for Icelandic startups in renewable energy and technology.

5. Transparent and Efficient Tax SystemSingapore’s straightforward digital tax-filing system eliminates bureaucracy and minimizes compliance costs.
   

Singapore–Iceland Economic Relationship

1. Growing Bilateral TradeAlthough trade volumes are modest, Singapore and Iceland share growing cooperation in renewable energy, shipping, and innovation. Icelandic expertise in geothermal energy and sustainable fisheries complements Singapore’s focus on green growth.

2. Shared Values in Innovation and SustainabilityBoth countries prioritize technology-driven and eco-conscious business models, creating synergy for collaboration and investment.

3. EU–Singapore Free Trade Agreement (EUSFTA)While Iceland is not part of the EU, the EUSFTA influences trade norms that benefit European Economic Area (EEA) businesses, including Icelandic companies operating via EU affiliates.

4. Strong Global ConnectivityIcelandic companies can use Singapore as a base to reach Asian partners and customers efficiently through its world-class ports and airports.

5. Presence of Nordic Companies in SingaporeMany Nordic firms from Sweden, Denmark, and Norway already operate in Singapore, paving the way for Icelandic companies to join this growing community.
   

Common Challenges and Solutions

1. Local Director Requirement→ Solution: Engage a reputable nominee-director service through your CSP.

2. Understanding Regulatory Compliance→ Solution: Partner with a trusted corporate-secretarial firm to manage annual filings and compliance.

3. Bank Account Opening→ Solution: Prepare comprehensive documentation — including business plans, ownership proof, and KYC documents — to meet banking standards.

4. Cultural and Market Adaptation→ Solution: Attend trade events, connect with local chambers, and build partnerships to understand regional business culture.
   

Tips for Icelandic Entrepreneurs Expanding into Singapore

• Partner with a professional incorporation and accounting firm to handle compliance smoothly.

• Join Nordic business networks like the Nordic Innovation House or Singapore–Nordic Chamber of Commerce.

• Use Singapore as your regional headquarters to coordinate Southeast Asian operations.

• Explore grants and incentives offered by Enterprise Singapore for foreign companies.

• Focus on growth sectors such as clean energy, logistics, food innovation, and maritime technology — areas where Icelandic expertise excels.
  

Conclusion

For Icelandic entrepreneurs, registering a company in Singapore offers a golden opportunity to access Asia’s booming markets while operating in a secure and efficient environment. Singapore’s pro-business laws, low taxes, and political stability make it a top destination for global expansion.

Whether you’re an innovative startup or an established Icelandic enterprise, Singapore provides the ideal platform to grow your business internationally. With the help of a reliable corporate-service provider, you can easily incorporate your Singapore company from Iceland and begin tapping into one of the world’s most dynamic economic ecosystems.

To find out more, visit https://www.shkoh.com.sg/incorporation-services